Ideas versus ideology: The origins of modern labor economics

Starting with its early twentieth century origins, the development of Labor Economics is traced to the present. We describe an intellectual revolution in which an earlier tra-dition that focused primarily on the institution of the labor union has been replaced by a perspective that emphasizes the various roles played by labor markets in an eco-nomic system. That earlier tradition contained very significant ideological elements, whereas its successor deals much more with the world of ideas. In the course of the debate, which still continues, ideas triumphed over ideology and created modern Labor Economics.